REG - Parity Group PLC - Trading Update

PartwayAnnouncement

25/07/2022 07:00

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RNS Number : 5244T  Parity Group PLC  25 July 2022

25 July 2022

 

Parity Group plc

 

Half Year Trading Update

 

Parity reports growth in net fee income for the first time in more than three
years and a positive Adjusted EBITDA for H1 2022

 

 

Parity Group plc (AIM: PTY), the data and technology-focused recruitment and
professional services company, is pleased to issue a trading update for the
half year ended 30 June 2022.

 

H1 Highlights

·    Net Fee Income expected to be up to 9% higher against prior period,
H2 2021.

·    The first time in more than three years that the business has
increased NFI in sequential reporting periods.

·    Improved operating performance in H1 2022 following actions taken to
refocus the business and streamline the cost base during the prior year.

·    Adjusted EBITDA((1)) forecast for H1 2022 to be circa £0.3m,
following an EBITDA((1)) loss in H2 2021.

 

Mark Braund, Executive Chairman, said:

"Having successfully rebuilt the core recruitment business platform within
Parity, we are beginning to see this capability make a positive impact on the
performance of the business.

During the period, we materially improved customer relationships and the size
and quality of Parity's virtual bench of skilled technology contractors,
re-establishing it as one of the best of its kind addressing the public sector
market.  With improvements in mobility and skills transfer, Parity's access
to these skilled resources will be increasingly valuable as we focus more of
our attention on the commercial (private) sector.

With this foundation in place, we are evolving our proposition to include
relevant new areas of business that will support future growth.  Permanent
recruitment is one such opportunity, driven by demand from current clients and
the wider market. I am delighted that the investment we have made during H1
2022 to develop our permanent recruitment team is already beginning to pay
back with a positive contribution to our first half performance.  We are
seeking to develop this revenue stream further in the second half.

The last nine months or so have seen significant change in the make-up, focus
and strength of the team.  The enthusiasm, commitment and tenacity of all my
colleagues is at the core of Parity's turnaround.  For this and on behalf of
the Board, I say a heartfelt "thank you".

We still have much more to do but with each step we are making, our
foundations are getting stronger.  The balance of the year will be focused on
maintaining our positive momentum and positioning the business for further
growth in 2023."

(1)      - Adjusted to exclude non underlying items

 

 Contacts

 Parity Group plc                                        Tel: + 44 (0) 20 8171 1729

 Mark Braund, Executive Chairman                         www.parity.net
 Mike Johns, Chief Financial Officer

 Allenby Capital Limited (Nominated Adviser and Broker)  Tel: +44 (0) 20 3328 5656

 David Hart / Freddie Wooding (Corporate Finance)
 Tony Quirke (Sales and Corporate Broking)

 

 

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